I would not be to optimistic about this happening. I was out for a ride with Stanley last weekend and we drove thru part of the refinery. We were not supposed to be in there but, you know, open gate, no one around, in we go. After a short trip looking around at the facilities, I do not think it could be restarted without a major major investment to rebuild most of the plant. Much of it is a rusting pile of junk and I could not see any real advantage to keeping any of the structures. Unless some big are invested, I do not see the plant coming back on line any time soon. . . .

Much of it is a rusting pile of junk and I could not see any real advantage to keeping any of the structures. Unless some big are invested, I do not see the plant coming back on line any time soon. . . .

That's just my assessment of what I saw. . . . .

Perhaps it's not as bad as it looks? You could expect some rust on the outsides of the tanks and other metal structures; on account of the salt in the air.

Perhaps it's not as bad as it looks? You could expect some rust on the outsides of the tanks and other metal structures; on account of the salt in the air.

Did you check your PM's?

Hi Vincep,

I agree with the surface rust but when you look at some of the piping and tanks, you can see holes thru them. Also, with all the salt air here, if things are not maintained they go to crap very fast. Most of the equipment at the site has been sitting for years with no maintenance at all. That's the problem along with the majority of the equipment being so far outdated that it is not worth trying to save. Most likely replacement parts are no longer available for the broken down stuff. . . . I did talk with a few people here that were construction professionals and they agreed that the best thing to do is knock it all down and start over with the newest and latest equipment. But, that takes a big investor with deep pockets. . .

Don't get me wrong, I would love to see come back to life, I just don't think it will happen. I could see moving the container port there as it has a deep water harbor and a secure property. . . . .

Unless I am missing something...

Elections aside, whole thing makes perfect sense.

The refinery can be re-started to refine heavy sour crude for a modest amount relative to refitting the entire plant to refine light sweet crude-- HUGE $$$ and the reason why Valero wanted to sell in the first place.

China imports more heavy sour crude than medium or light weights.

China imports more and more oil each year. They have the need and the cash to pay for it. So much so that for the first time in 8 years, the U.S. in 2013 exported oil to China.

They import much of it from Venezuela.

Petróleos de Venezuela S.A. (PDVSA) refineries have issues with lack of capital due to gutting of their finances by the Venezuelan government. Think financing political elections.

Venezuela does on the other hand have readily available mature oil fields producing substantial supplies of heavy sour crude.

If they cannot keep up with their own refineries which are also in disrepair, and in some cases need a huge investment, then invest (I am thinking China will have a hand in it in some part) a modest amount in reopening an existing heavy sour crude facility which again will only need money for a restart and not a refit.

Only downside I see is a lot of jobs for Venezuelans and Chinese workers. 780 jobs were lost when the refinery closed the last time. When PetroChina was looking at buying the refinery word then was that they would bring in their own workers from China.